ECB, EU Central Banks Push to Replace MiCA Stablecoin Deposit Rule with Liquidity Thresholds

European Central Bank officials, together with several EU national banks, argue that the MiCA stablecoin deposit rule could trigger liquidity squeezes if holders rush to redeem tokens.

MiCA stablecoin deposit requirement under review

Their proposal swaps a fixed minimum bank‑deposit floor for a dynamic liquidity‑threshold metric tied to the issuer’s cash reserves. Analysts warn that abrupt outflows could force lenders to liquidate assets, potentially amplifying market stress. A

“sudden redemption shock would strain even well‑capitalised banks,”

noted a senior regulator in a recent interview with Reuters. Preliminary modelling suggests a ↓ 12% increase in funding costs for stablecoin issuers under the current floor, versus a ↓ 5% risk of systemic spill‑over with the proposed threshold. The shift aligns with broader EU efforts to harmonise crypto‑asset supervision, as detailed in a Bloomberg report. Stakeholders will monitor the European Commission’s response, slated for the coming quarter.

Intel provided by: Lyra Valance

Digital Assets & Web3 Insider